L’Oreal will stop selling Garnier brand
L’Oreal SA, the world’s largest cosmetics company, said it will stop selling Garnier-brand products in China , about a week after competitor Revlon Inc said it would leave the country.
In an e-mail to China Daily, France-based L’Oreal said it had made the “proactive” decision of discontinuing the sales of Garnier products in China so that the group’s consumer products division can grow at a “faster and more sustainable” pace.
The transition is intended to prepare for L’Oreal’s future and strengthen its leading position after 17 years in the Chinese beauty market, said the e-mail.
Garnier’s sales were less than 200 million yuan in the past three years, and it has been losing money continuously, which it can’t afford as a public company, said Michael Deng, who focuses on fast-moving consumer goods at Roland Berger Strategy Consultants.